YORK'S economy was in relatively good shape to withstand the global economic impact of September 11, it was revealed today.

The city's latest business survey showed that turnover in the second quarter of 2001 was the best in the past seven years.

More than half of firms reported an increase in turnover, with only nine per cent saying it had fallen.

Export performance also improved, said Tony Bennett, City of York Council's assistant director of economic development, in the authority's November economic bulletin.

But Mr Bennett warned that there was unprecedented uncertainty about the effects of the terrorist attack on the World Trade Centre in September.

He said there was likely to be a significant impact on tourism, as overseas visitors, especially Americans, stay away.

"The effect on the wider York economy is more difficult to assess - indeed both globally and nationally, analysts are still speculating as to the economic impact of the terrorist attack.

"Hopefully, the relatively strong economic position demonstrated throughout the August survey will provide a platform for the York economy to withstand the current difficulties - time will tell."

The bulletin says there is a two-speed economy operating in York, with the retail and finance sectors reporting very positive turnover while manufacturing firms are much less positive.

Updated: 10:18 Friday, November 23, 2001